diff --git a/.changeset/fix-list-rendering-p-tags.md b/.changeset/fix-list-rendering-p-tags.md
new file mode 100644
index 000000000..813308d6c
--- /dev/null
+++ b/.changeset/fix-list-rendering-p-tags.md
@@ -0,0 +1,5 @@
+---
+default: patch
+---
+
+Fixed lists rendering `p` html tags on new lines.
diff --git a/.changeset/fix-nested-lists-behavior.md b/.changeset/fix-nested-lists-behavior.md
new file mode 100644
index 000000000..f5b3113e4
--- /dev/null
+++ b/.changeset/fix-nested-lists-behavior.md
@@ -0,0 +1,5 @@
+---
+default: patch
+---
+
+Fixed nested lists having wrong indentation levels when editing.
diff --git a/src/app/plugins/markdown/bidirectional.test.ts b/src/app/plugins/markdown/bidirectional.test.ts
index 31ab6dd53..b5102798f 100644
--- a/src/app/plugins/markdown/bidirectional.test.ts
+++ b/src/app/plugins/markdown/bidirectional.test.ts
@@ -103,6 +103,26 @@ describe('bidirectional round-trip', () => {
     expect(result).toContain('2. Second');
   });
 
+  it('round-trips nested sublists with four-space indent', () => {
+    const markdown = '1. parent\n    - child';
+    const html = markdownToHtml(markdown);
+    expect(html).toMatch(/<li>[\s\S]*<ul/i);
+    const injected = injectDataMd(html);
+    const result = htmlToMarkdown(injected);
+    expect(result).toContain('1. parent');
+    expect(result).toContain('    - child');
+  });
+
+  it('round-trips nested sublists written with two-space indent', () => {
+    const markdown = '1. parent\n  - child';
+    const html = markdownToHtml(markdown);
+    expect(html).toMatch(/<li>[\s\S]*<ul/i);
+    const injected = injectDataMd(html);
+    const result = htmlToMarkdown(injected);
+    expect(result).toContain('1. parent');
+    expect(result).toContain('- child');
+  });
+
   it('round-trips spoiler syntax', () => {
     const markdown = '||hidden message||';
     const html = markdownToHtml(markdown);
diff --git a/src/app/plugins/markdown/expandBlockNewlines.test.ts b/src/app/plugins/markdown/expandBlockNewlines.test.ts
index 700d743a7..154284191 100644
--- a/src/app/plugins/markdown/expandBlockNewlines.test.ts
+++ b/src/app/plugins/markdown/expandBlockNewlines.test.ts
@@ -15,6 +15,24 @@ describe('expandBlockBoundariesAfterSingleNewlines', () => {
   it('still expands when a blockquote ends', () => {
     expect(expandBlockBoundariesAfterSingleNewlines('> quote\nplain')).toBe('> quote\n\nplain');
   });
+
+  it('does not expand between consecutive ordered list items', () => {
+    expect(expandBlockBoundariesAfterSingleNewlines('1. one\n2. two')).toBe('1. one\n2. two');
+  });
+
+  it('does not expand before a 2-space nested sublist', () => {
+    expect(expandBlockBoundariesAfterSingleNewlines('1. test\n  - sub')).toBe('1. test\n  - sub');
+  });
+
+  it('does not expand before a 4-space nested sublist', () => {
+    expect(expandBlockBoundariesAfterSingleNewlines('1. test\n    - sub')).toBe(
+      '1. test\n    - sub'
+    );
+  });
+
+  it('still expands before the first top-level list item after prose', () => {
+    expect(expandBlockBoundariesAfterSingleNewlines('intro\n- item')).toBe('intro\n\n- item');
+  });
 });
 
 describe('consecutive blockquotes', () => {
diff --git a/src/app/plugins/markdown/expandBlockNewlines.ts b/src/app/plugins/markdown/expandBlockNewlines.ts
index d4164ba3a..f436bb66d 100644
--- a/src/app/plugins/markdown/expandBlockNewlines.ts
+++ b/src/app/plugins/markdown/expandBlockNewlines.ts
@@ -135,11 +135,41 @@ function nextLineIsBlockStarter(md: string, newlineIdx: number): boolean {
   return looksLikeBlockStart(effective);
 }
 
+function leadingSpaces(line: string): number {
+  let k = 0;
+  while (k < line.length && line[k] === ' ') k++;
+  return k;
+}
+
+function lineLooksLikeListItem(line: string): boolean {
+  const effective = effectiveContentAfterEscapes(line);
+  if (effective === null) return false;
+  return /^\d{1,9}\.\s/.test(effective) || /^[-*+]\s/.test(effective);
+}
+
+function nextLineIsNestedListItem(md: string, newlineIdx: number): boolean {
+  const prevLine = lineAtNewline(md, newlineIdx);
+  const nextLine = lineAfterNewline(md, newlineIdx);
+  if (!lineLooksLikeListItem(nextLine)) return false;
+  return leadingSpaces(nextLine) > leadingSpaces(prevLine);
+}
+
+function nextLineIsSiblingListItem(md: string, newlineIdx: number): boolean {
+  const prevLine = lineAtNewline(md, newlineIdx);
+  const nextLine = lineAfterNewline(md, newlineIdx);
+  if (!lineLooksLikeListItem(prevLine) || !lineLooksLikeListItem(nextLine)) return false;
+  return leadingSpaces(prevLine) === leadingSpaces(nextLine);
+}
+
 function shouldExpandSingleNewline(md: string, newlineIdx: number): boolean {
   // Consecutive `>` lines belong to one blockquote, keep the single `\n` between them.
   if (prevLineIsBlockquote(md, newlineIdx) && nextLineContinuesBlockquote(md, newlineIdx)) {
     return false;
   }
+  // Keep single `\n` between list items (siblings) and before nested sublists (2- or 4-space indent).
+  if (nextLineIsSiblingListItem(md, newlineIdx) || nextLineIsNestedListItem(md, newlineIdx)) {
+    return false;
+  }
   if (nextLineIsBlockStarter(md, newlineIdx)) return true;
   // CommonMark lazy continuation keeps non-`>` lines inside blockquotes, close on single `\n`.
   if (prevLineIsBlockquote(md, newlineIdx) && !nextLineContinuesBlockquote(md, newlineIdx)) {
diff --git a/src/app/plugins/markdown/htmlToMarkdown.test.ts b/src/app/plugins/markdown/htmlToMarkdown.test.ts
index 57e5e25bd..219e67089 100644
--- a/src/app/plugins/markdown/htmlToMarkdown.test.ts
+++ b/src/app/plugins/markdown/htmlToMarkdown.test.ts
@@ -4,9 +4,12 @@ import {
   MX_EMOTICON_MD_SEP,
   MX_EMOTICON_MD_START,
 } from './extensions/matrix-emoticon';
+import { toMatrixCustomHTML, trimCustomHtml } from '$components/editor/output';
 import { plainToEditorInput } from '$components/editor/input';
 import { BlockType } from '$components/editor/types';
+import { injectDataMd } from './injectDataMd';
 import { htmlToMarkdown } from './htmlToMarkdown';
+import { markdownToHtml } from './markdownToHtml';
 
 describe('htmlToMarkdown', () => {
   it('converts headings', () => {
@@ -125,6 +128,20 @@ describe('htmlToMarkdown', () => {
     expect(result).toContain('Item 1');
   });
 
+  it('indents nested sublists with four spaces per level', () => {
+    const html = '<ol><li><p>parent</p><ul><li><p>child</p></li></ul></li></ol>';
+    expect(htmlToMarkdown(html)).toContain('1. parent');
+    expect(htmlToMarkdown(html)).toContain('    - child');
+  });
+
+  it('edit-load and save round-trip keeps nested sublist', () => {
+    const md = '1. test\n    - sub\n';
+    const loaded = htmlToMarkdown(injectDataMd(markdownToHtml(md)));
+    expect(loaded).toContain('    - sub');
+    const html = trimCustomHtml(toMatrixCustomHTML(plainToEditorInput(loaded), {}));
+    expect(html).toMatch(/<li>[\s\S]*<ul/i);
+  });
+
   it('preserves data-md attributes for round-trip', () => {
     const result = htmlToMarkdown('<strong data-md="**">bold</strong>');
     expect(result).toContain('**bold**');
diff --git a/src/app/plugins/markdown/htmlToMarkdown.ts b/src/app/plugins/markdown/htmlToMarkdown.ts
index cf00d0dd4..0e3756d8d 100644
--- a/src/app/plugins/markdown/htmlToMarkdown.ts
+++ b/src/app/plugins/markdown/htmlToMarkdown.ts
@@ -11,6 +11,9 @@ import { isAllowedHtmlTag } from './allowedHtmlTags';
 import { formatMfmColorDataMd } from './extensions/matrix-mfm-color';
 import { isMatrixHexColor } from '$utils/matrixHtml';
 
+/** CommonMark list nesting indent (four spaces per level). */
+const LIST_MARKDOWN_INDENT = '    ';
+
 /**
  * Converts Matrix-compatible HTML back to markdown for round-trip editing.
  * Preserves original markdown syntax via data-md attributes and converts
@@ -419,7 +422,7 @@ function processUnorderedList(
   insideCode: boolean = false
 ): string {
   const mdSequence = node.attribs['data-md'] || '-';
-  const indent = '  '.repeat(depth);
+  const indent = LIST_MARKDOWN_INDENT.repeat(depth);
   const items = node.children
     .filter((c): c is Element => isTag(c) && c.name === 'li')
     .map((li) => {
@@ -439,7 +442,7 @@ function processOrderedList(node: Element, depth: number = 0, insideCode: boolea
       ? mdSequence
       : `${mdSequence}.`;
 
-  const indent = '  '.repeat(depth);
+  const indent = LIST_MARKDOWN_INDENT.repeat(depth);
   const items = node.children
     .filter((c): c is Element => isTag(c) && c.name === 'li')
     .map((li, index) => {
diff --git a/src/app/plugins/react-custom-html-parser.test.tsx b/src/app/plugins/react-custom-html-parser.test.tsx
index 5f0cb8fb3..c29158224 100644
--- a/src/app/plugins/react-custom-html-parser.test.tsx
+++ b/src/app/plugins/react-custom-html-parser.test.tsx
@@ -446,4 +446,15 @@ describe('react custom html parser', () => {
       expect(screen.queryByText('&lt;test&gt;')).not.toBeInTheDocument();
     }
   );
+
+  it('unwraps paragraph tags inside list items instead of rendering block breaks', () => {
+    const { container } = renderMessage(
+      '<ol><li><p>one</p></li><li><p>two</p></li></ol><ul><li><p>bullet</p></li></ul>'
+    );
+
+    expect(container.querySelector('p')).toBeNull();
+    expect(container.textContent).toContain('one');
+    expect(container.textContent).toContain('two');
+    expect(container.textContent).toContain('bullet');
+  });
 });
diff --git a/src/app/plugins/react-custom-html-parser.tsx b/src/app/plugins/react-custom-html-parser.tsx
index 8a15df7ea..adb78f3a6 100644
--- a/src/app/plugins/react-custom-html-parser.tsx
+++ b/src/app/plugins/react-custom-html-parser.tsx
@@ -111,7 +111,7 @@ function KatexRenderer({
 
   useEffect(() => {
     let mounted = true;
-    Promise.all([import('katex'), import('katex/dist/katex.min.css')]).then(([katex]) => {
+    void Promise.all([import('katex'), import('katex/dist/katex.min.css')]).then(([katex]) => {
       if (mounted) {
         setHtml(katex.default.renderToString(math, { throwOnError: false, displayMode }));
       }
@@ -430,7 +430,7 @@ export function CodeBlock({
   const [copied, setCopied] = useTimeoutToggle();
 
   const handleCopy = () => {
-    copyToClipboard(extractTextFromChildren(children));
+    void copyToClipboard(extractTextFromChildren(children));
     setCopied();
   };
 
@@ -631,6 +631,9 @@ export const getReactCustomHtmlParser = (
         }
 
         if (name === 'p') {
+          if (parent instanceof Element && parent.name === 'li') {
+            return <>{renderChildren()}</>;
+          }
           return (
             <Text {...props} className={classNames(css.Paragraph, css.MarginSpaced)} size="Inherit">
               {renderChildren()}